DocuSign delivered a solid QQ3 2025 performance anchored by continued strength in its core eSignature business and the early momentum of the Intelligent Agreement Management (IAM) platform. Revenue came in at $755 million (GAAP ~), up about 8% year over year, with subscription revenue of $735 million and billings of $752 million (both +8% and +9% YoY respectively). Management highlighted 100% dollar net retention, new customer growth of 11% YoY to 1.6 million, and a non-GAAP operating margin of 29.6%, underscoring efficiency gains even as IAM investments ramp. The company reiterated a multi-year IAM modernization strategy, integrating Lexion AI capabilities, expanding Navigator, and rolling out IAM by department in enterprise contexts. International revenue represented 28% of total revenue, up 14% YoY, signaling a broadening geographic footprint. The balance sheet remains structurally healthy with ~$1.1 billion in cash and equivalents and no net debt, enabling continued buybacks ($173 million in Q3) and selective investment. For FY2025, management guided total revenue of $2.959–$2.963 billion and non-GAAP operating margins of roughly 29.5%–29.7%, signaling confidence in the path to sustainable profitability as IAM scales. Near-term risks include cloud-migration cost headwinds and the need to sustain IAM adoption across commercial and enterprise segments in a multi-year rollout.
Key takeaways for investors:
- IAM is the primary growth lever alongside core eSignature, with early deal velocity and a scalable go-to-market (GTM) plan.
- The company maintains strong cash generation and a defensible liquidity position, supporting ongoing buybacks and balanced investment in R&D and GTM.
- The outlook remains modestly constructive, with 4QFY25 billings guided at $870–$880 million and full-year billings growth around 5% at the midpoint, plus continued improvements in retention and utilization driving durable revenue growth.